Pub group Brown Taylor Ltd is defying the slowing economy by opening a new bar and restaurant in a prime site.

The group, which also runs 99 Hanover Street in Edinburgh plus pubs in Aberdeen and Broughty Ferry, will launch its latest venue, Hawke + Hunter, in November.

Hawke + Hunter is based in the Georgian building on Picardy Place in the capital which formerly housed private members' clubs the Hallion and Home House.

Co-founder of Brown Taylor, Barrie Brown, says his company has taken advantage of a strong cash flow position to negotiate a favourable lease purchase buyout from the venue's former operator, Quintillion.

The firm has entered into a partnership agreement with Scottish & Newcastle to complete the 25-year lease of the building, which was secured in a six-figure deal. Brown and former Scotland rugby international, Simon Taylor, founded the company in 2006 with an initial investment of £20,000.

Last year the firm reported turnover in excess of £2million.

Despite tough trading conditions, Brown is confident the latest addition to the portfolio will be a success. He said: "Hallion was obviously a great place, but we think we can make a huge difference by offering the facilities available in the property to the general public.

"We have agreed a lease on a buyback lease purchase from Quintillion in a six-figure deal, which includes our refurbishment costs. The purchase was funded through cash from the business and also from backing from Scottish & Newcastle, who we have worked closely with on another of our projects.

"We were afforded a very good deal for the premises because it is quite difficult for people to demonstrate cash flow at present. Had this been two years ago there would have been a lot more interest in the property than there actually was.

"We could have basically just opened the doors again and started trading because there had been an extensive refurbishment of the premises before Hallion opened, but we wanted to give it our own unique style so we've made some changes.

"We see a definite gap in a market for discerning customers looking for something different and a little off the beaten track. Basically we're not marketing this as a bar for the masses."

Hawke + Hunter boasts a main restaurant as well as two private dining rooms, late-night bar, billiard room, a 'secret garden' and four boutique bedrooms. Brown is hopeful corporate customers will get behind the venue.

He said: "There are a number of big firms right on our doorstep who we would hope to attract for lunch and after-work drinks."